Record New Businesses in 2025–26 — What PAYG Employees Should Know
ASIC data shows 385,716 new businesses registered in 2025–26. If you're moving roles or going contractor, here's how novated leasing still works for you.
New ASIC figures cited by the Treasury Ministers office show 385,716 new businesses were registered in 2025–26, with 43,393 in June alone — the highest single-month figure since records began in 1999. An average of nearly 900 businesses opened every day of the current parliamentary term.
That's a lot of Australians going out on their own, changing employment structure, or picking up side income. And it raises a question we get asked constantly: if I leave my PAYG job or set up my own company, what happens to my novated lease?
What this means for novated lease customers
A novated lease is a three-way agreement between you, your employer, and a finance provider. The pre-tax salary deductions — which are the core of why it saves you money — only work while you're employed by a participating employer. If you move from PAYG employment into self-employment, sole trading, or operating through your own company, the novation arrangement doesn't carry over automatically.
That doesn't mean novated leasing is off the table forever. If your new business employs you as a PAYG employee of your own company, a novated lease can still be structured — but the setup is more involved, and FBT obligations sit with the employing entity. It's worth getting clear on this before you hand in your notice, not after.
For the large majority of PAYG employees whose employers remain in the picture, none of this is relevant — business registration numbers don't change your entitlements. But if you're among the growing cohort thinking about making a move, the timing of your lease decisions matters. Potential savings are real, but they depend entirely on keeping the employment structure intact.
Common questions
Can I keep my novated lease if I leave my employer to start a business?
Not automatically. The novation — the agreement that lets your employer make pre-tax deductions on your behalf — ends when employment ends. You'd need to either transfer the lease to a new employer or, if your business employs you directly as PAYG, set up a fresh arrangement.
What happens to my lease repayments if I go self-employed?
The lease itself doesn't disappear — the car finance contract still exists. Without an employer facilitating pre-tax deductions, you'd typically revert to making after-tax repayments directly to the finance provider until a new employer takes on the novation, or you refinance.
Can I novate a lease through my own company?
Potentially yes, if your company employs you as a genuine PAYG employee and is set up to meet its FBT obligations as the employer. This is more complex than a standard novated lease and you should get advice specific to your structure before proceeding.
Does this record business-creation data change EV novated lease rules?
No. The EV FBT exemption rules are set by the ATO and Treasury — they're not affected by ASIC registration volumes. The exemption for eligible zero or low-emission vehicles continues under the current legislative framework.
I'm a PAYG employee with no plans to leave — does any of this apply to me?
Probably not directly. If your employment arrangement is stable, your novated lease entitlements are unchanged. This news is most relevant if you're weighing a career or structure change.